Real Estate Math
Using the income approach, a Virginia property with an NOI of $45,000 and a cap rate of 7.5% has a value of approximately:
A$337,500
B$450,000
C$600,000✓ Correct
D$675,000
Explanation
Value = NOI ÷ Cap Rate = $45,000 ÷ 0.075 = $600,000.
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